A. Based on the expected value of the net cash inflows, which project should be undertaken?
(A) L
(B) M
(C) N
(D) O
(E) P.
B. The value of perfect information about the state of the market is
(A) Nil
(B) £5,000
(C) £26,000
(D) £40,000
(E) £128,000.
The following data relates to both Questions 42.4 and 42.5. An education authority is considering the implementation of a CCTV (closed circuit television) security system in one of its schools. Details of the proposed project are as follows: